Question
You own a bond that has a duration of 6 years. Interest rates are currently 7% but you believe the Fed is about to increase
You own a bond that has a duration of 6 years. Interest rates are currently 7% but you believe the Fed is about to increase interest rates by 25 basis points. Your predicted price change on this bond is?
A bond is presentlyworth $1,080.00 and its yield to maturity is 8%. If the yield to maturity goes down to 7.84%, the value of the bond will go to __________ if the duration of the bond is 9.
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
